Turnbull Government talking down Clean Energy Target while questioning subsidies for renewable energy

POWER customers paid South Australian wind farms about $350 million in subsidies in the past year under the current renewable energy scheme, analysis shows.

POWER customers paid South Australian wind farms about $350 million in subsidies in the past year under the current renewable energy scheme, analysis shows.

It comes as Federal Energy Minister Josh Frydenberg questioned whether renewables still require subsidies.

Mr Frydenberg used a speech at a national energy summit on Monday to talk down the Clean Energy Target — considered the central proposal in Dr Alan Finkel’s report into the national grid.

Conservative MPs have raised concerns about the level of subsidies renewable generators were already given under the RET and have warned the Prime Minister they could not support extending handouts.

They believe if power bills do not come down, the Coalition could not win the next election.

The Government is understood to be working on a different mechanism from the CET that would provide incentives for reliability.

Coal, gas and renewables would all likely be included in such a scheme.

Federal Energy Minister Josh Frydenberg speaking at the Australian Financial Review National Energy Summit. Picture: Dean Lewins/AAP

“Industry is looking for that stability; they’re not necessarily looking for a handout,” Mr Frydenberg said.

“Globally in the past seven years, the cost of wind-powered generation has more than halved. Domestically, solar PV costs have dropped more than 50 per cent.

“It is against this backdrop of a declining cost curve for renewables and storage, greater efficiencies that can be found in thermal generation and the need for sufficient dispatchable power in the system that we are considering the Finkel review’s 50th recommendation.”

He said the Government would announce its response to the CET recommendation before the end of the year.

Data from the Australian Energy Market Operator showed that between September last year and August this year, there were 4.5 million megawatt hours of scheduled wind generation.

Mr Turnbull would only reaffirm that reliability and affordability were priorities.

“What we are determined to do is to ensure that energy is reliable, affordable and that we meet our emissions reduction commitments,” he said.

Premier Jay Weatherill repeated calls for the states to go it alone with a CET.